Wednesday, 30 September 2015

crude chart update

Oil futures tallied a loss of 24% for the third quarter, after ending Wednesday lower on the back of a report revealing the first U.S. crude-supply increase in three weeks.

The report also showed a modest decline in domestic production, helping prices limit losses for the session.

The U.S. Energy Information Administration reported Wednesday an increase of four million barrels in crude supplies for the week ended Sept. 25. That was the first climb in three weeks. Analysts polled by Platts expected supplies to be unchanged, while the American Petroleum Institute Tuesday said supplies jumped 4.6 million barrels.

Part of the reason for the increase in crude supplies was less demand from refineries, where activity decreased with maintenance season in effect. Refinery utilization fell to 89.8% last week from 90.9%. Read: Gasoline prices stop falling as refinery maintenance season kicks in

Domestic oil production, however, showed a decline for the week, with total output at about 9.1 million barrels a day, down 40,000 barrels, according to the EIA. Production for the lower 48 states, which excludes Alaska, fell 21,000 barrels to 8.63 million barrels a day.

Wednesday trading to be volatile, given that it is the end of the month and quarter. In the days and weeks to come, we will see further [crude-supply] builds and rallies we have may be short lived,

Gasoline supplies rose 3.3 million barrels while distillate stockpiles fell 300,000 barrels last week, according to the EIA. Analysts polled by Platts expected gasoline stockpiles to be down 500,000 barrels and distillate inventories, which include heating oil, to show a decline of 1.2 million barrels.

Traders are keeping a close watch on economic data for hints on energy demand. Data from large U.S. payroll processor ADP Wednesday showed that companies in the private sector added 200,000 jobs in September. Economists were expecting an increase of about 190,000. The Labor Department issues its closely watched employment report on Friday.

crude chart update below shows crude has seen serious selling lately, and we are stuck in a pennant pattern, that is about to break up or down!. No matter what, if crude keeps being suppressed, that will have an effect on the market as well, since that has been the case since AUGUST 2015.